Treasury futures
Fixed IncomeDefinition
Standardized futures contracts on US Treasury securities. Most-traded: 10Y Note, 2Y Note, 5Y Note, 30Y Bond, Ultra 10Y, Ultra Long. Used for duration hedging, basis trading, and outright rate views.
The Treasury basis (cash vs. futures) trade has historically been a major source of hedge-fund leverage. Disruptions in the basis (e.g., Sept 2019, March 2020) signal serious funding stress and force Fed intervention.
The Treasury basis (cash vs. futures) trade has historically been a major source of hedge-fund leverage. Disruptions in the basis (e.g., Sept 2019, March 2020) signal serious funding stress and force Fed intervention.